Head-To-Head Comparison: Enterprise Products Partners L.P. (EPD) versus Phillips 66 Partners (PSXP)
Enterprise Products Partners L.P. (NYSE: EPD) and Phillips 66 Partners (NYSE:PSXP) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
This table compares Enterprise Products Partners L.P. and Phillips 66 Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enterprise Products Partners L.P.||10.28%||12.04%||5.25%|
|Phillips 66 Partners||45.35%||23.01%||9.97%|
This is a breakdown of current recommendations for Enterprise Products Partners L.P. and Phillips 66 Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enterprise Products Partners L.P.||0||0||14||0||3.00|
|Phillips 66 Partners||1||1||9||0||2.73|
Enterprise Products Partners L.P. currently has a consensus price target of $31.50, suggesting a potential upside of 20.64%. Phillips 66 Partners has a consensus price target of $57.13, suggesting a potential upside of 16.96%. Given Enterprise Products Partners L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe Enterprise Products Partners L.P. is more favorable than Phillips 66 Partners.
Enterprise Products Partners L.P. pays an annual dividend of $1.68 per share and has a dividend yield of 6.4%. Phillips 66 Partners pays an annual dividend of $2.46 per share and has a dividend yield of 5.0%. Enterprise Products Partners L.P. pays out 132.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 Partners pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enterprise Products Partners L.P. has increased its dividend for 3 consecutive years and Phillips 66 Partners has increased its dividend for 18 consecutive years.
Institutional and Insider Ownership
37.9% of Enterprise Products Partners L.P. shares are held by institutional investors. Comparatively, 43.0% of Phillips 66 Partners shares are held by institutional investors. 37.5% of Enterprise Products Partners L.P. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Enterprise Products Partners L.P. and Phillips 66 Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enterprise Products Partners L.P.||$26.33 billion||2.13||$5.06 billion||$1.27||20.56|
|Phillips 66 Partners||$781.00 million||6.91||$461.00 million||$2.43||20.10|
Enterprise Products Partners L.P. has higher revenue and earnings than Phillips 66 Partners. Phillips 66 Partners is trading at a lower price-to-earnings ratio than Enterprise Products Partners L.P., indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Enterprise Products Partners L.P. has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Phillips 66 Partners has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.
Phillips 66 Partners beats Enterprise Products Partners L.P. on 9 of the 17 factors compared between the two stocks.
About Enterprise Products Partners L.P.
Enterprise Products Partners L.P. (Enterprise) is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products in North America. The Company’s segments include NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The Company’s midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals, including liquefied petroleum gas (LPG); crude oil gathering, transportation, storage and terminals; petrochemical and refined products transportation, storage, export and import terminals, and related services, and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems.
About Phillips 66 Partners
Phillips 66 Partners LP (Phillips 66) owns, operates, develops and acquires fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines, terminals and other transportation and midstream assets. The Company’s assets consist of systems, such as Clifton Ridge Crude System, Eagle Ford Gathering System, Ponca Crude System, Billings Crude System, Borger Crude System, Sweeny to Pasadena Products System, Hartford Connector Products System, Gold Line Products System, Cross-Channel Connector Products System, Ponca Products System, Billings Products System, Bayway Products System, Standish Pipeline, Borger Products System, River Parish NGL System, Medford Spheres, Bayway Rail Rack, Ferndale Rail Rack, Sand Hills/Southern Hills Joint Ventures, Explorer Pipeline Joint Venture, Bakken Joint Ventures, Bayou Bridge Pipeline Joint Venture, STACK Pipeline Joint Venture, and Sweeny Fractionator and Clemens Caverns.
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